Key takeaways
- Canary Capital announced on November 6 that its Canary Staked INJ ETF is listed on Nasdaq under the ticker INJC.
- The Defiant reported the fund plans to stake at least 90% of its INJ holdings and charge a 1.10% annual sponsor fee.
- Canary warns that staking can lose INJ through slashing and that the fund is not registered under the Investment Company Act of 1940.
In this story 3 sections
Canary Capital's staked INJ ETF is now listed on Nasdaq under the ticker INJC, the company said Friday morning, in what it calls the first US spot fund that both holds Injective's INJ token and stakes it.
The launch, announced in a Canary Capital press release at 9 a.m. Eastern on November 6, came days after Nasdaq signed off on the listing. CoinDesk reported that INJ was up 14% for the week, even as bitcoin fell more than 5% on Thursday in a selloff led by AI stocks.
How INJC turns staking into fund returns
The fund has two jobs, according to Canary. It tracks the price of INJ, and it earns extra INJ by taking part in the proof of stake process that secures the Injective network. Rewards, after staking costs are taken out, show up in the fund's net asset value rather than arriving as a separate payout.
The fund does not run a validator itself. Canary, as sponsor, handles the staking program through outside custodians and staking providers, which the release does not name. The Defiant, reporting on the Nasdaq approval on November 4, said the fund plans to stake at least 90% of its INJ and charges a 1.10% annual sponsor fee. The Defiant also noted that the fund's registration had to become effective before shares could be sold.
The pitch is convenience. "Investors can now gain exposure to INJ through the brokerage accounts they already use," said Eric Chen, co-founder of the Injective Foundation. Canary CEO Steven McClurg said investors are "increasingly looking past the largest digital assets and toward the specialized networks building the next generation of on-chain financial infrastructure."
Injective's numbers and the risks Canary spells out
Injective is a layer 1 blockchain aimed at trading, tokenized assets and other financial apps. INJ is used for staking, governance votes and fees. As of October 22, Canary's release says, the network had processed more than 3.13 billion transactions and burned more than 7.27 million INJ, worth about $58 million, through monthly token buybacks.
The fund's own disclosures are blunt. A few points worth reading before you buy:
- Staking can lose INJ, and staked tokens may face slashing penalties.
- The fund is new and has a limited operating history.
- It is not registered under the Investment Company Act of 1940, so it does not carry the protections that law gives mutual funds.
- Canary says it is not suitable for anyone who cannot afford to lose their entire investment.
A fund wrapper removes the chore of wallets and validators. It does not remove the price swings of a smaller token. INJ jumped 14% in a week when bitcoin dropped, and moves that size can run in either direction, while the sponsor fee takes its cut every year.
Where INJC fits among new crypto products
INJC arrives while Washington is still settling the rules for digital assets. Our look at how the midterm results put the CLARITY Act on a clock covers the market structure bill that could shape funds like this, and the CFTC's approval of equity perpetual futures shows how quickly new trading products are reaching US venues.
If you are weighing any crypto purchase, the questions in Is Bitcoin a Good Investment? apply to INJ as well. The billions that left the exchange after Binance's hack also explain why some buyers would rather hold a listed fund than an exchange account. More coverage is on our crypto page.
One practical tip: the press release does not list the expense ratio or name the staking providers, so read the fund's prospectus for the final fee and staking terms before placing an order.
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